JPMorgan has pledged a broad $US20 billion ($25 billion) investment in its business, staff and customers, making it the latest US company to link its expansion plans to President Donald Trump's $US1.5 trillion tax cuts and war on of red tape.

In an economic, political and public relations coup for the Republican tax cuts, the Wall Street bank joins about 200 American listed companies such as Apple and Wal-Mart to recently announce capital investment and higher pay and one-off bonuses for workers.

JPMorgan said the package was made possible by the firm's strong business performance, recent changes to the US corporate tax system and a more constructive regulatory and business environment.

JPMorgan's broadly defined investment over five years includes: raising wages an average of 10 per cent to between $US15 and $US18 an hour for 22,000 employees; expanding its US branch network, and in the process hiring 4000 more people; raising community-based philanthropic investments by 40 per cent to $US1.75 billion; and increasing small business lending by $US4 billion.

Currently, the firm has 5130 branches in 23 US states and intends to expand to 15-20 new markets in several new states over the next five years.
Daniel Tepper

"Having a healthy, strong company allows us to make these long-term, sustainable investments," said JPMorgan chief executive Jamie Dimon.

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Mr Dimon has been a long-time proponent of corporate tax reform, though his relations with the President cooled last year after Mr Trump's divisive remarks about racially charged riots in Charlottesville.

The centrepiece of the recently-enacted US tax reform was a cut in the corporate rate to 21 per cent from 35 per cent. It also provides for a one-time tax on "deemed repatriation" of prior offshore profits, the ending of most taxes on future offshore profits and a temporary write-off of capital investment.

While shareholders are expected to receive the lion's share of the tax cuts through higher dividends and share buybacks, hundreds of companies have been quick to announce capital investment and rewards for staff.

US President Donald Trump stands next to Jamie Dimon in February last year, months before CEOs quit Trump's advisory council in protest at his response to the Charlottesville racial riots.
Andrew Harrer

Analysts have attributed the investments and higher staff remuneration to a mix of tax reform, the accelerating economy, tightening US labour market and the search by companies for better public reputations.

Michael Farr, president of high net worth investment advisory firm Farr, Miller & Washington, said: "There is some pressure on management teams to share some of the tax windfall with employees, if for nothing else than to make it look like the cuts weren't simply a gift to corporations."

White House economic adviser Gary Cohn said there was a "100 per cent correlation" between the corporate announcements and tax reform and deregulation.

"Companies now feel better, more comfortable about the economic position they're in, they feel better about the US economy, they feel more confident of their earnings and they feel like the lower tax rate allows them to share more of their potential earnings with their employees," he said.

Eligible employees at Walmart will receive a one-time cash bonus of up to $US1000 and paid parental and maternity leave will be extended to up to 10 weeks.
Elise Amendola

Retail giant Wal-Mart, the country's largest private employer, this month credited the slashing of the US corporate tax rate for pay rises for its lowest-paid workers, to a minimum $US11 an hour from $US9-10. Eligible employees will receive a one-time cash bonus of up to $US1000 and paid parental and maternity leave will be extended to up to 10 weeks.

Apple announced a day earlier it would pay a one-time tax of $US38 billion on its overseas profits due to the Republican "deemed repatriation" law.

In Australia, Treasurer Scott Morrison has pressed the Senate to trim the corporate rate to 25 per cent from 30 per cent, arguing part of the benefit would flow through to investment and higher wages. Labor and the minor parties have rejected the proposal.